How to Check Your CIBIL Score and Determine Maximum Personal Loan Eligibility

Personal Loan can be a reliable financial solution, whether you are planning a home renovation, covering medical expenses, or funding your dream wedding. However, before you apply, one critical factor that can determine your eligibility and loan amount is your CIBIL score. In this blog, we will walk you through the steps to check your CIBIL score and how it can help you determine your Personal Loan eligibility. Read on!

Why is CIBIL Score Important for a Personal Loan?

Your CIBIL score is a key metric used by lenders to assess your creditworthiness. It is derived from your credit history, repayment patterns, and existing debts, among other financial behaviours. 

Here’s why it is important for your loan:
•    Risk Assessment: Your CIBIL score indicates if you’re a high or a low-risk applicant for the lender.
•    Fast Processing: With a solid credit record, approvals are quicker and require minimal documentation.
•    Interest Rate Negotiation: A good CIBIL score may allow you to avail of a Personal Loan at low rates.

Impact of CIBIL Score on Personal Loan Approval

Your CIBIL score directly impacts on your chances of a Personal Loan being approved. Lenders use this score as a key indicator of your creditworthiness. A high CIBIL score reflects strong credit behaviour and significantly improves your chances of loan approval. 

Most financial institutions prefer applicants with a consistent repayment track record and minimal outstanding debts. A low score signals a higher risk of default, prompting lenders to either reject the application. On the other hand, maintaining a high CIBIL score gives you greater financial flexibility and bargaining power when it comes to interest rates and loan tenure. 

Steps to Check Your CIBIL Score Online

Checking your CIBIL score is free, easy, and doesn’t impact your credit history. Here’s how you can do it:

Step 1: Visit a trusted bureau like TransUnion (CIBIL), Equifax, or Experian. You can also check your score through Poonawalla Fincorp.

Step 2: Click on the ‘CIBIL Score’ option.

Step 3: Fill in your basic details such as name, mobile number, date of birth, PAN and address.

Step 4: Authenticate using an OTP sent to your registered mobile number.

How to Determine Your Maximum Personal Loan Eligibility

Here are several factors that lenders use to assess your eligibility:

Monthly Income
Your monthly income is crucial in deciding how much of a Personal Loan you can get. Lenders evaluate your income to ensure you have enough capacity to repay. The higher your monthly earnings, the better your chances of securing a higher loan amount. Therefore, maintaining a good balance between your income and expenses can seamlessly boost your Personal Loan eligibility.

Employment Stability
Your employment type and stability also impact your Personal Loan eligibility. If you’re a salaried individual working with a reputable company, lenders consider your income more stable and predictable. For the self-employed, showing a consistent business income for the last couple of years and a clean financial record can work in your favour.

Age and Loan Tenure
Lenders often view age as a reflection of your financial lifecycle. This helps them structure the loan tenure that aligns with your income patterns. If you’re a young applicant, you may benefit from a long repayment tenure that keeps your EMIs manageable. If you are more established, you are likely to have better financial stability. This can work in your favour by enabling you to opt for a shorter tenure and repay faster. This in-turn increases your chances of loan approval for a higher amount. 

If you’re looking for a hassle-free and online loan, Poonawalla Fincorp offers a Personal Loan of up to ₹50 lakhs with 100% paperless application process and flexible EMI tenure of up to 84 months.

Apply for Poonawalla Fincorp’s Personal Loan

Follow the 3 simple steps below:

Step 1: Click on “Apply Now”
Tap on the ‘Apply Now’ button to initiate your application.
Step 2: Enter Your Details
Enter your DOB, PAN card number, monthly income, and residential details.
Step 3: Upload Your Documents
Upload the necessary or required documents for quicker approval.

Once your verification is successful, the loan amount will be disbursed into your bank account instantly.

To Conclude

Understanding your CIBIL score is the first step toward unlocking better financial opportunities. It not only influences your chances of getting a Personal Loan but also plays a vital role in determining the loan amount, interest rate, and repayment terms. By regularly checking your credit score and maintaining a healthy credit profile, you can significantly enhance your personal loan eligibility.

Poonawalla Fincorp offers Personal Loan at attractive interest rates and with minimal documentation. Apply now and take charge of your credit health today!

Frequently Asked Questions

Does checking my CIBIL score affect my credit score?
No, checking your own CIBIL score is considered a soft inquiry and does not impact on your credit score.

What role does employment stability play in personal loan approval?
Employment stability is important for lenders as it indicates a steady income. Salaried individuals with stable jobs are often preferred, but self-employed individuals with consistent business income can also qualify.